WAFF casts doubt over dairy output plans

Western Australia's peak farm lobby group has described as "excessively optimistic" much of a proposal to double the state's dairy output.

A pre-feasibility study commissioned by the Department of Agriculture and Food outlines a $650 million investment blueprint, to meet growing Asian demand.

The plan would potentially lead to the export of 30,000 tonnes of whole milk powder to China each year and heavy expansion in the Great Southern dairy industry.

However, WA Farmers Federation (WAFF) president Dale Park says the body has thoroughly examined the study and is worried there are significant flaws in its estimates.

"If someone called me up and said, should I be right into it, I think I'd be saying be careful, have a look into it but do your own numbers and see how it works," he said.

"Yes it probably is a bit optimistic but that's never really stopped people from going ahead with new ventures.

"Just keep in mind that you have to have your eyes open when you go into this."

Agriculture Minister Ken Baston insists the plan can work and says it is not overly optimistic.

"I think if anyone can pull it off, Western Australia can, purely because of our position," he said.

"There's the by-products as well that would be in demand ... so I think there's huge opportunities.

"Demand for milk in South-East Asia is increasing by 18 billion litres per year.

"I've been told that's also the equivalent to the total production of New Zealand in one year, so that just gives you some indication of - if we connect the ends - what type of demand pool we can create."